The main part of online shops are the payment options. Nothing is more important to an online customer than the payment providers. Customers are of course a bit spoiled when it comes to the selection. With one of the highest bounce rates in the shopping cart are the missing digital payment companies. And let’s be honest, would you choose a supplier that you don’t know yourself or open a new account there just to get your goods?
Exactly this effort makes many customers jump off.
You have to have a damn good offer or product. Therefore, use as many providers as possible for your online shop.
We would like to introduce you to some of the most important providers here. Of course, every payment provider has its pros and cons. Every shop operator has to see what is best for him/herself.
What exactly is a payment provider or payment provider ?
A selected payment provider handles the entire payment process for the customer as a service.
There are various processing fees for this payment processing service. Some providers charge a basic fee and a certain percentage, while others retain a fee depending on the turnover. Depending on the type and amount of sales, we may incur different fees for payment transactions.
Some digital payment companies in cost comparison
Overview of the most popular digital payment companies and payment options.
1.Paypal
The most well-known and most widespread type of payment processing is PayPal, meanwhile this payment option is offered in over 95% of most shops.
PayPal offers a number of payment options. The most important are PayPal Plus (PayPal installment payment, invoice, direct debit, credit card and classic PayPal) and also the PayPal Express Button variant. Even if customers do not have an active PayPal account, payments with the PayPal service are possible here. The express checkout variant is a clearly visible button directly on the item. This yellow/orange button, which is usually very conspicuous, sends the customer directly to PayPal, where the customer can then pay quickly without having to enter information such as address, PayPal draws this data from the PayPal account.
Payments are included with all PayPal payment options.
Pricing:
Transaction fee adjusted monthly sales. (% of sales plus a fixed amount)
By:
- Payment guarantee for all options
- Many payment options
- Different countries & currencies
- No setup or basic fee
Cons:
- Usually its own interface in the payment wall
Information on www.paypal.com
2. Amazon Pay / Amazon Payments
The payment option from Amazon, Amazon Pay, simplifies payment processing for the customer. Since it is assumed today that almost everyone has an Amazon customer account, you can also use the Amazon account to register for payment in your online shop. All important noted payment and shipping information is retrieved directly from Amazon, the customer does not have to enter it again.
The classic payment methods that Amazon uses are now also displayed in your web shop, i.e. payment by credit card (Visa, MasterCard) and the popular Sepa direct debit procedure.
Pricing:
Percentage of the transaction and a fixed base fee for that transaction.
By:
- No monthly fee
- Simplified login for customers
Cons:
- No purchase on account possible
- No installation payments possible
- Amazon receives customer data
Information on http://pay.amazon.com
3. Klarna
Launched on the market, the company was taken over by Klarna.
Klarna handles the purchase for the customer, whether the purchase is by direct debit, payment in installations or purchase on account. When purchasing on account, the retailer has no risk here, since Klarna assumes the risk for a service fee.
When purchasing on account, the customer pays for the goods only after receipt (as is normal with purchase on account) the payment of the amount to the seller is secured by Klarna so that the seller receives his money in any case, even if the buyer has not yet paid or the payment withholds, especially important in cases of fraud. This also applies to installment payments processed via Klarna.
Price:
The provider calculates a percentage of the monthly basic fee and a fixed fee per transaction. Customers with an “old” contract from do not pay a basic fee.
By:
- Fixed interest rate & guarantee
- Secure payment by installations
- money in the event of default
Cons:
- Monthly base fee
- Only a few payment methods possible
Information on www.klarna.com
4. Skrill
The prepaid payment version of Skrill. Similar to phone cards, credit is booked to your Skrill account (credit card). This credit can be credited to your Skrill account by credit card, bank transfer or GiroPay, and then you can use it to pay at a Skrill partner. Skrill uses a standard credit check to protect its merchants and therefore also gives a payment guarantee.
Price:
Depending on the turnover, a fee of at least 1% will be charged.
By:
- Payment guarantee / credit check
- Payment also possible with cryptocurrency
- No setup fee/monthly fee
Cons:
- high chargeback fees
Information on www.skrill.com
5. Saferpay (SIX Payment Services)
With the Saferpay payment variant, the Swiss company Six Payment offers a focus on particularly secure processing of possible payment transactions.
Saferpay offers you or the customer the payment methods of credit card payment (MasterCard, Visa, Maestro and American Express), direct debit (Sepa), Giropay, payment by bank card.
Prices:
The fees are agreed and coordinated with the individual customer in the contract.
By:
- Very sure
- Many payment methods
- Many payment options to choose from
- Working with different currencies is possible without any problems
Cons
- No purchase on account possible
- No installation payments possible
Information on www.six-payment-services.com/
Conclusion
A payment provider, a so-called payment provider, already offers the retailer many advantages!
The payment providers take on many parts of the merchant’s risk of default, and the work involved in processing the money is also taken over in full. The dealer simply has his head free and can take care of his business and hands over this work to the provider for a certain fee. Every dealer has to decide for himself what he wants to offer. Many payment options are always good for the customer, but you should assess which options you really want to offer the customer.
As a retailer, weigh up what you want to offer your customers and how high the cost-benefit factor is.
We wish all dealers good sales and much success.
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